The Nishat Power EV Investment marks a decisive step by one of Pakistan’s leading independent power producers into the country’s emerging electric vehicle ecosystem. Nishat Power Limited (NPL) has formally announced plans to invest up to Rs2.5 billion in NexGen Auto (Private) Limited, a related entity focused on electric and new-energy vehicles, underscoring its long-term commitment to diversification and sustainability.
The development was disclosed through an official notice to the Pakistan Stock Exchange, where the company also confirmed that shareholder approval will be sought through an Extraordinary General Meeting. The move reflects a broader trend among energy companies looking beyond conventional power generation toward cleaner and future-oriented sectors.
Structure of the Nishat Power EV Investment
Under the approved proposal, the Nishat Power EV Investment will comprise two components. The first is an equity injection of Rs2 billion through the acquisition or subscription of 200 million ordinary shares of NexGen Auto at a face value of Rs10 per share. This equity stake positions Nishat Power as a significant participant in NexGen’s long-term growth strategy.
In addition, NPL will extend a Rs500 million working capital loan to NexGen Auto for one year. The financing will carry a variable return linked to the three-month KIBOR plus 100 basis points, or the company’s average borrowing cost, whichever is higher. Returns will be payable on a quarterly basis, ensuring structured cash flows for the listed power producer.
NexGen Auto’s Rapid Progress in EV Market Entry
Founded in August 2024, NexGen Auto has moved swiftly to establish itself as a serious contender in Pakistan’s electric vehicle space. Central to the Nishat Power EV Investment thesis is NexGen’s strategic partnership with China’s Cherry Automobile Co. Ltd, enabling the import, local assembly, and nationwide distribution of its Omoda and Jaecoo sub-brands, both of which specialize in new-energy vehicles.
These brands are positioned to cater to Pakistan’s growing demand for fuel-efficient and environmentally friendly transport solutions, particularly as fuel prices and climate considerations reshape consumer preferences.
Related: XPENG Poised to Enter Pakistan With Electric Vehicles; Flying Cars May Follow Later
Pre-Launch Momentum and Local Assembly Plans
NexGen Auto’s commercial rollout is already gaining momentum. Sales and marketing teams are actively running pre-launch campaigns, building anticipation ahead of a large-scale launch event scheduled for the first week of August 2025. Industry observers view this timeline as ambitious but achievable, given the groundwork already completed.
Documents shared with the stock exchange indicate that NexGen’s CKD assembly operations are expected to commence within calendar year 2025. This local assembly model aligns closely with government objectives to promote industrialization, reduce import dependence, and create skilled employment opportunities.
Financial Scale and Strategic Rationale
The total project cost for NexGen Auto’s EV operations is estimated at Rs14.7 billion, to be financed through a mix of equity and debt. Within this broader framework, the Nishat Power EV Investment represents both a financial and strategic stake in Pakistan’s evolving auto landscape.
From Nishat Power’s perspective, the investment is expected to generate long-term dividend income and potential capital gains, while also diversifying its revenue streams beyond the power sector. Equally important, the move strengthens the company’s positioning as a participant in sustainability-focused ventures at a time when ESG considerations are gaining prominence among investors.
A Broader Signal to the Market
Beyond its immediate financial implications, the Nishat Power EV Investment sends a strong signal to the market about confidence in Pakistan’s electric vehicle future. As regulatory frameworks improve and consumer awareness grows, such investments could play a catalytic role in accelerating the country’s transition toward cleaner mobility solutions.
In the long run, this strategic entry into electric vehicles may redefine Nishat Power’s corporate identity—from a traditional energy producer to a diversified player aligned with Pakistan’s sustainability and industrial growth ambitions.
